Private Placement Memorandum and Subsequent Event
|12 Months Ended|
Dec. 31, 2016
|Private Placement Memorandum and Subsequent Event [Abstract]|
|PRIVATE PLACEMENT MEMORANDUM AND SUBSEQUENT EVENT||
During 2015, the Company entered into a placement agency agreement with a third party to assist in raising capital. Direct costs of this private placement memorandum (PPM) will be deferred and reduce the proceeds from the shares sold in the PPM. Costs of $2,271,637 have been incurred and capitalized related to this PPM as of December 31, 2015 and are recorded in prepaid expenses, deposits and deferred costs.
Total amount to be converted to common stock is $13,534,426 was recorded as notes payable as of December 31, 2015. Net proceeds to the Company were $12,242,104 which was converted on early 2016.
In February 1, 2017, the Company announced the completion of its underwritten public offering of 6,500,000 shares of its common stock at a public offering price of $3.00 per share. In addition, the underwriters exercised an option to purchase an additional 975,000 shares of common stock at the public offering price, less the underwriting discounts and commissions.
All of the shares in the offering were sold by Workhorse Group, with gross proceeds to Workhorse Group of approximately $22.4 million and net proceeds of approximately $20.5 million, after deducting underwriting discounts and commissions and estimated offering expenses.